Wednesday, October 29, 2025
3.65 million reminders that "do nothing" is the costliest workplace compliance strategy of all.
A federal-court jury just hit a pair of New York hotels (and their owners) with a $1.65 million compensatory and $2 million punitive damages verdict after a female assistant manager alleged residents sexually harassed her daily and management did nothing to stop it.
The facts are brutal — constant sexual comments, physical assaults, even being knocked unconscious by a thrown table. Her male counterpart didn't face the same abuse. Even worse, her bosses ignored or laughed off every complaint that she made. When she asked for a transfer, management said "no openings." Turns out, that wasn't true. She quit in fear for her safety. Then she sued.
The jury believed her. And they made sure the company and its leaders felt it.
Here are five lessons for employers.
1. Harassment by non-employees is still your problem.
Whether it's a customer, resident, or vendor — if an employee reports harassment, you have a duty to act. "That's just how they are" is not a defense.
2. Don't laugh off complaints.
The manager who found a security video of one of the assaults "funny" didn't just show poor judgment. She gave the plaintiff Exhibit A in proving her case.
3. Train and empower managers to respond.
If your frontline supervisors don't know what to do with a harassment complaint, you're one complaint away from liability.
4. Documentation and action matter.
The employer here ignored repeated reports, took no corrective action, and offered no protection. Juries notice and punish accordingly.
5. Culture starts at the top.
When leadership signals that employee safety and respect aren't priorities, the entire organization pays the price (in this case, literally).
This case is an expensive lesson on workplace harassment compliance. Sadly, it won't be the last.
For more information, contact Jon at (440) 695-8044 or JHyman@Wickenslaw.com.
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